JLL Sells 56 West 22nd Street in New York
The 12-story office and retail property is located in the in-demand Midtown South
NEW YORK, March 31, 2020 — JLL Capital Markets announced today that it has completed the sale of 56 West 22nd Street, a boutique office and retail asset in Manhattan’s Flatiron District. Kaufman Organization purchased the 66,190-square-foot property from the Blum Family for $48.5 million.
The 12-story 56 West 22nd Street was designed by Maynicke & Franke and constructed in 1907. The mixed-use building totals 66,190 square feet, with 59,719 square feet of office space on the second through 12th floors, and 6,471 square feet of retail space on the ground floor and lower level. The retail space benefits from 47 feet of frontage in one of New York’s most prominent shopping areas.
The property is located in the heart of the Flatiron District between Fifth and Sixth Avenues. It is one block west of the Flatiron Building and Madison Square Park, positioning 56 West 22nd Street in one the most highly trafficked neighborhoods in Manhattan. The building is located alongside the historic Ladies Mile, still one of the top shopping destinations in New York City, and is near some of the city’s most prominent cultural destinations, including Madison Square Park, Union Square, the Flatiron Building and Eataly.
The Flatiron District is a dynamic live-work-play neighborhood, with exceptional residential options, dining, nightlife and shopping. The area is a technology hub, with some of the world’s premier technology and media companies choosing to establish commercial footprints in the neighborhood. The property offers easy access to the entire New York City area with seven subway lines within two blocks, including the 1, 6, D, M, R, W and PATH trains.
The JLL Capital Markets professionals overseeing the sale of 56 West 22nd Street include Chairman Bob Knakal; Vice Chairman Stephen Palmese; Managing Directors Jonathan Hageman, Brock Emmetsberger and David Giancola; Vice President Patrick Yannotta and Associate Ryan Kossoy. Leasing guidance was provided by JLL’s Senior Vice President Randy Abend and Executive Vice President Justin Haber, and Executive Vice President Aaron Niedermayer provided financing guidance.
“Class B office product has been the biggest beneficiary of the flight of capital from the multifamily space in New York City into other asset classes,” Knakal said. “With the changes in the rent regulations in June of this past year, historically active multifamily investors have left that space and are increasingly looking outside New York for multifamily investments and at other asset classes within New York City. More than half of the prospects for this property had never purchased an office building in the city before. This is a very positive trend for office building sales in New York.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.